Documentation- Introduction and Physical DFDshome.kelley.iupui.edu/jrsmith2/Teaching/A337webF09/A337Fall09lec… · Recommendation: Bring colored pencils or highlighters of about

Documentation-Introduction and Physical DFDs

Class # 2

Recommendation: Bring colored pencils or highlighters of about 4 or 5 differentcolors to class today.

Today, we will begin our discussion of systems documentation and will continue for thenext four (including today) class periods. Today we will discuss the nature of systemsdocumentation and why we do it. In addition, you will learn how to draw physical DataFlow Diagrams (DFDs) today and I will let you try to do one on your own. In Class# 3 Iplan to discuss logical DFDs and go over Flowcharting. In Class#4, we will review all threedocumentation techniques.

• Why study system documentation?For purposes of this class, the study of documentation will provide us with a means ofcommunicating about system characteristics and how systems work. Documentationperforms this same task for auditors and managers. In addition, documentation of thesystem allows the auditor to describe (as evidence of audit work) how the data in thefinancial statements is generated and to assess strengths and weaknesses of the generationprocess. In this way the auditor can more effectively target audit tests to areas in which the“system” is weak.

• How do we document systems?There are different approaches to documentation for different accounting firms. They arenot mutually exclusive. Usually a firm will combine several different approaches todocumenting the system. Some approaches get at how the system works and the personnelinvolved in running it, some get at the logical relationships between different operating units,some get at the flow of documents through the system, and some are aimed at assessingstrengths and weaknesses of the system. Below is a list of several approaches todocumentation along with an assessment of what this approach focuses on.

Narratives Narratives describe in regular “English” what is going on ina system - who is doing what. Usually the accountantprepares the narrative by watching the individuals doing theirjob, and then interviewing them about what they do. It isimportant that the narrative be clearly written. Usually, it isbetter to write in short, simple sentences in active voice(unlike the sentence you are reading). The advantage to thenarrative is that it is easy for anyone to understand; thedisadvantage is that there is so much information in thenarrative it is difficult to get an understanding from thenarrative as to what is going on. Therefore we will also relyon diagrams (of various sorts).

Data Flow Diagrams (DFDs) DFDs are simple diagrams (only a few different kinds ofsymbols) which highlight a particular aspect of the system.For example one diagram might describe the data flowsbetween individuals in the cash receipts process, anothermight describe the logical sequence of things which must be

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done in this system, while another might give an overview ofhow the system interfaces with other systems (what datacomes into the system - and from where and what data goesto other entities). The advantage of DFDs is their simplicity.Almost anyone can look at a DFD and get a feel for what isgoing on. Their disadvantage is that they are limited in howmuch information can be put into a single diagram (becausethey are simple).

Document Flowcharts Flowcharts (with which you are probably familiar) arediagrams which show the activities performed and the flow ofdocuments, goods, and information from entitity to entity in asingle diagram. They have many symbols and are muchmore complex than DFDs, but they are also more complete.Most (if not all) of the detail in the narratives is included on adocument flowchart.

Checklists There are certain characteristics of each system which youwould expect to be true if the system is reliable. Fromexperience, auditors have compiled lists of thesecharacteristics. And from these lists, the auditors can createchecklists. Note that the checklist is a means of assessingstrengths and weaknesses. It is not really a description of thesystem.

Control Matrices Like checklists, control matrices are means of evaluatingsystems. The matrix typically has columns representingdifferent control objectives of the system and rowsrepresenting characteristics of the system. Cell entriesidentify matchups between characteristics of the system andobjectives of the system.

In this class, we unfortunately cannot go too much into how narratives are constructed.Rather, we will work from narratives and prepare DFDs and flowcharts. Control matriceswill be discussed in a later point in the course. We will begin with DFDs.

• Data Flow Diagrams (DFDs)There are three different types of DFDs: Context, Physical, and Logical. Context DFDs arediagrams which offer an overview of the system as it relates to other systems and/or entities:who sends data or documents into the system and what documents and data are generatedby the system and sent outside of the system. Physical DFDs diagram the entities(departments, people, computers) within the system and what documents and data are sentbetween these entities in the system. Finally, logical DFDs outline the relationshipsbetween the various processes which are performed.

We shall begin with physical DFDs. The first stage in preparing physical DFDs (from anarrative) is to identify the internal and external entities. Next, activities are identified byverbs and numbered. As a rule of thumb, every verb should indicate an activity performedby some entity. I suggest that you identify and number all activities for one entity (even ifthey are in disjoint parts of the narrative) before moving to the next. Then, prepare a list ofthe activities. From the list of activities, you can prepare the physical DFD.

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On the physical DFD, external entities will be represented by squares and internal entitieswill be represented by circles. The circles and squares need not be numbered. Files will berepresented by two horizontal lines with the name of the file between the two lines. Draw anarrow from one entity to another to represent data going from the first entity to the second.If data comes back, that should be another arrow.

For file interactions, if information is being retrieved from a file and the file is not updatedor modified, then an arrow should be drawn from the file to the entity. If the entity iscreating a new file or is “logging” information into a file and no standing data in the file isbeing changed, then an arrow should be drawn from the entity to the file. Finally, if the fileis being updated, a double-headed arrow between the file and the entity should be drawn.Note that if the file is a computer file, the arrow must be to/from the computer entity. Allarrows on the physical DFD should be labled.

In the overheads packet, we will go through several narratives and prepare physical DFDsfor them.

Below are some guidelines for the preparation of physical DFDs. Guidelines 7-10 are forlogical DFDs and will be provided with tomorrows lecture.

Drawing the Context DiagramGuideline 1. Include within the system context (bubble) any entity that performs one or

more information processing activities.

Guideline 2. Include only normal processing routines, not exception routines or errorroutines, on context diagrams, physical DFDs, and level 0 logical DFDs.

Guideline 3. Include on the systems documentation all (and only) activities described inthe system narrative-no more, no less.

Guideline 4. When multiple entities operate identically, depict only one to represent all.

Drawing the Current Physical Data Flow DiagramGuideline 5. For clarity, draw a data flow into and out of a file.

Guideline 6. If a file is logically necessary (that is, because of a delay between processes),include a file in the diagrams, whether or not it is mentioned in the narrative.

Summary of Drawing Data Flow DiagramsGuideline 11. A data flow should go to an operations entity square when only operations

functions are to be performed by that entity. A data flow should enter abubble if the operations entity is to perform an information processingactivity.

Guideline 12. On the physical DFD, the computer is an internal entity if it performs anyactivities. In addition, all peripheral devices are considered a part of thisentity (and not separate entities).

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Para Line Text1 1 The Causeway Company uses the

2 following procedures to process the cash3 received from credit sales. The mailroom4 receives checks and remittance advices from5 customers; a clerk endorses the checks6 and writes the amount paid and the check7 number on the remittance advice.8 Periodically, the mailroom clerk prepares a9 batch total of the remittance advices and10 sends the batch of remittance advices to11 accounts receivable along with a copy of12 the batch total. At the same time, the13 clerk sends the corresponding batch of14 checks to the cashier.

2 15 In accounts receivable, a clerk enters16 the batch into an online terminal by keying17 the batch total, the customer number, the18 invoice number, the amount paid, and the19 check number. After verifying that the20 invoice is open and that the correct amount21 is being paid, the computer posts the22 payment to the accounts receivable master23 file. If there are any discrepancies, the24 clerk is notified.

3 25 At the end of each batch (or at the26 end of the day), the computer prints a27 deposit slip in duplicate on the terminal28 in the cashier's office. The cashier29 compares the deposit slip to the30 corresponding batch of checks and then31 takes the deposit to the bank.

4 32 As they are entered, the check number33 and the amount paid for each transaction are34 logged on tape. This log is used to create35 a cash receipts listing a the end of each36 day. A summary of customer accounts paid37 that day is also printed at this time. The38 accounts receivable clerk compares the39 reports to the remittance advices and batch40 totals and sends the total of the cash41 receipts to the general ledger office.

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FoodWays, Inc.Sales Entry and Cash Receipts

Below are two brief narratives which describe the processing of sales using a scanner andthe receipt and processing of checks by FoodWays grocery stores, a medium-sized chainof groceries in the midwest. The narrative ignores processing of sales for cash or fordebit card and also ignores the processing of non-scannable items in order to simplify thedocumentation. Treat the cash register as a part of the computer (they are the sameentity).

Part One - Sales EntryPrior to each transaction, the cashier at FoodWays enters a1code into the cash register to let the cash register know that2a new transaction is being processed. The cashier then3receives items from the customer and scans the items into4the computer.5

The computer reads the bar code and finds the price and6description information from the inventory file. The7computer displays the item description and its unit price on8an LED display on the register.9

At the end of the transaction, the cashier enters a total key10which tells the computer to total the transaction. The11computer computes the total and displays the total on the12LED display.13

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ERA Restaurant Jobbers12

Background: ERA Restaurant Jobbers employs several field3representatives to service client restaurants in western Oregon.4The representatives travel from restaurant to restaurant filling5orders for many of the staple goods such as flour, sugar,6condiments, vegetables, and so forth.7

8Narrative for DFDs: From a client restaurant a representative will9pick up a signed order sheet from the restaurant manager for the10quantities desired of each item sold by ERA.11

From his (her) car, the representative connects to ERA’s order12processing computer package using a laptop computer and a13cellular phone. The representative enters the customer number into14the computer; and then enters item numbers and quantities of each15item requested.16

The computer captures the customer number and order information17and then reads the accounts receivable master file to verify that the18customer has sufficient credit to allow the transaction. If the19transaction is allowed, the computer then displays an approval20screen on the representative’s computer and records the sales21information in a “sales order database” and prints two copies of the22sales order on a laser printer in the representative’s car.23

The representative reconciles the printed sales order to the request24he keyed in and then enters a code into the computer to execute the25sales transaction. When the representative enters the code, the26computer updates the sales order database and the accounts27receivable master file to reflect the execution. The representative28takes a copy of the sales order to the manager of the restaurant.29

3031

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Documentation Why do auditors pay such close attention to system

documentation?l It helps to understand the system - how it works.l The auditor’s documentation of the system provides a

reference as well as a justification for the subsequent testingprocedures undertaken in the audit. The documentationoutlines and identifies the system of internal control, whichin turn will guide the approach to the audit. EXAMPLE:“Mail clerk endorses checks” - with a weakness in internalcontrol, a test of transactions might not be helpful.

Documentation (ctd)

l Some approaches to documentation:– Narratives– Data flow diagrams (DFDs)– Check lists– Data Dictionaries– Flow Charts– Control Matrices (not in your notes)

l DFDs– Symbols– Type (context, physical, logical)– Balance

Vocabulary of DFDsContext

DFDPhysical

DFDLogical

DFD

Bubble

Square

TheSystem

InternalEntity

ExternalEntity

ExternalEntity

ExternalEntity

Process

N/A File File

DataFlow

DataFlow

DataFlow

or “connector”

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Context - bird’s eye view

CustomerCustomer

BankBank

Cash Receipts systemCash Receipts system

check

receipt

deposit

Physical - people

CustomerCustomer

BankBank

MailroomMailroom

check

receipt

deposit

A/RA/R

CPTRCPTR

CashierCashier

depositinfo

depositslip

Logical - things you do

CustomerCustomer

BankBank

open mailopen mail

check

receipt

deposit

enterinfo & update

files

enterinfo & update

files

Preparedeposit

Preparedeposit

8

Preparing Physical DFDsIdentify internal and external entities

Identify Activities

Draw CIRCLES for internal entities and SQUARES forexternal entities

Draw arrows between entities to represent data (eitherdocuments or other information going from one entity toanother (or files)

Guidelines for DFDs

Drawing the Context Diagram

Guideline 1. Include within the system context (bubble) anyentity that performs one or more informationprocessing activities.

Guideline 2. Include only normal processing routines notexception routines or error routines, on all DFDs(that we will do)

Guideline 3. Include on the systems documentation all (andonly) activities described in the system narrative -no more, no less.

Guideline 4. When multiple entities operate identically, depictonly one to represent all.

Guidelines for DFDsDrawing the Current Physical Data Flow Diagram

Guideline 5. For clarity, draw a data flow for each flow into orout of a file.

Guideline 6. If a file is logically necessary (that is, because of adelay between processes), include a file in thediagrams, whether or not it is mentioned in thenarrative. DON’T worry about this one - for ourclass.

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Guidelines for DFDsSummary of Drawing Data Flow Diagrams

Guideline 11. A data flow should go to an operations entitysquare when only operations functions are to beperformed by that entity. A data flow shouldenter a bubble if the operations entity is toperform an information processing activity.

Guideline 12. On a physical DFD, reading computer files andwriting to computer files must go through acomputer bubble.

Table of ActivitiesEntities and activities

Mailroom 1. Receives checks and remittance advices2. Endorses checks3. Annotates R/As4. Prepares batch total5. Sends batch of R/As to A/R6. Sends batch of checks to Cashier

CustomerA/Rec 7. Enters the batch into online terminal (CPTR)

8. Keys stuff into cptr9. Compares CPTR reports with R/As and batch totals10. Sends total of Cash Receipts (C/R) to G/L office

Cashier 11. Compares deposit slip with batch of cks12. Takes deposit to the bank

CPTR 13. Verifies open invoice and correct amt14. Posts payment to A/R master15. Notifies A/R clerk of errors16. Prints deposit slip17. Logs transactions18. Creates C/R listing19. Prints summary of cust. accts. paid

BankG/L office

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Mailroom1. Recieves checks and remittance advices2. Endorses checks3. Annotates R/As4. Prepares batch total5. Sends batch of R/As to A/R6. Sends batch of checks to cashierAccounts Receivable7. Enters the batch into an online terminal (CPTR)8. Keys stuff into CPTR9. Compares CPTR reports with R/As and batch totals10. Sends total of Cash Receipts to G/LCashier11. Compares Deposit Slip with batch of checks12. Takes deposit to the bankComputer13. Verifies the invoice is open and the correct amount paid14. Posts payment to A/R master15. Notifies A/R clerk of errors16. Prints deposit slip17. Logs transactions18. Creates C/R listing19. Prints summary of customer accts paid

CausewayTable of Activities

1,2,3,4,5,6,7,8,17,13,14,15,16,11,12,18,19,9,10

11

1.0Mailroom

1.0Mailroom

4.0Computer

4.0Computer

3.0Cashier

3.0Cashier

2.0Accounts

Receivable

2.0Accounts

Receivable

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Documentation-Logical DFDs

Class # 3

Recommendation: Bring colored pencils or highlighters of about 4 or 5 differentcolors to class today.

Today, we will focus on the preparation of logical DFDs. Logical DFDs describe therelationships between the different processes. Basically, we take the list of activities, crossof some activities which “don’t fit” and then organize the remaining activities into groupswhich we will call processes. We then draw a diagram in which each bubble is a processand arrows relate to connections between the processes. An arrow can indicate that oneprocess logically follows another or that there is some information flow from process toprocess.

Every external entity on the physical DFD must also be on the logical DFD. In addition,every arrow to or from an external entity on the physical DFD must also appear on thelogical DFD and it should be labeled the same as in the physical DFD. Except for arrowsto and from external entities, no other arrows on the logical DFD need be labeled.

Now we will go through the steps in preparing a logical DFD from a narrative and aphysical DFD. Start with the list of activities prepared for the physical DFD. Cross off allactivities which are sends, receives, forwards, takes, etc. because these are not activites whereinformation is actually being processed. This does not mean that we will ignore theseactivities, just that we will not group them. Next, try to sort the transactions chronologically.Then try to make cuts at points where there is a logical distinction between one activity andthe next in the chronologically sorted list. Try for 5-7 bubbles (3-4 for this class - since ournarratives are quite a bit simpler). Draw the circles, squares, and files and draw theappropriate arrows to/from external entities and label them! Then connect the remainingcircles and circles to files by arrows which indicate sequencing (to the extent it can bedetermined). Arrows to/from files should relate to the processes in which the activities arefor file access (an example will really help here).

Below are the remaining guidelines for drawing logical DFDs. We will continue with thenarratives from the last class period.

Drawing the Current Logical Data Flow Diagram

Guideline 7. Group activities if they occur in the same place and at the same time.

Guideline 8. Group activities if they occur at the same time but in different places.

Guideline 9. Group activities that seem to be logically related, in order to eliminate single-activity bubbles whenever possible.

Guideline 10. To make the DFD readable, (try to) use between five and seven bubbles.

Guideline 13. On logical DFDs, never draw an arrow from a higher numbered bubble to alower numbered bubble.

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Vocabulary of DFDsContext

DFDPhysical

DFDLogical

DFD

Bubble

Square

TheSystem

InternalEntity

ExternalEntity

ExternalEntity

ExternalEntity

Process

N/A File File

DataFlow

DataFlow

DataFlow

or “connector”

Guidelines for DFDsDrawing the Current Logical Data Flow Diagram

Guideline 7. Group activities if they occur in the same placeand at the same time.

Guideline 8. Group activities if they occur at the same time butin different places.

Guideline 9. Group activities that seem to be logically related.

Guideline 10. To make the DFD readable, (try to) use betweenfive and seven bubbles. For our class, try to usebetween three and four bubbles.

Guidelines for DFDsSummary of Drawing Data Flow Diagrams

Guideline 11. A data flow should go to an operations entitysquare when only operations functions are to beperformed by that entity. A data flow shouldenter a bubble if the operations entity is toperform an information processing activity.

Guideline 12. On a physical DFD, reading computer files andwriting to computer files must go through acomputer bubble.

Guideline 13. On a logical DFD, data flows cannot go fromhigher to lower numbered bubbles.

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Preparing Logical Preparing Logical DFDsDFDs

® Take the list of activities and lightly CROSS OFF all send and receiveactivities (including forward, take, etc.)

® List activities chronologically and group activities where it feels good!® CONSTRUCT the Logical DFD!

Three Hints:1) There should be 3 to 5 bubbles.

Likely candidates include capture,record,reconcile, update, and output. Actually, Iwill give you these.

2) Never have an arrow from a higher numberedbubble to a lower numbered bubble.

3) External entities and dataflows are exactly thesame as in the physical DFD.

Preparing LogicalPreparing LogicalDFDsDFDs

• Crossing off sends and receives does not meanthat we will ignore them. They just won’t beinside a process bubble.

• The easiest way to group activities is to writedown the activity numbers in chronologicalorder and find natural “breaks” in the process.

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1.0Capture

cashreceipts

3.0Preparedeposit

4.0Prepare

cashreceipts

total

2.0Record

customercollections

CausewayLogicalDFD

16

1.0InitiateSale

2.0CaptureSalesdata

3.0RecordSalesdata

4.0PrepareSalesTotal

Foodways 1LogicalDFD

17

1.0Capture

Transaction

2.0Approve

Transaction

3.0Record

Transaction

4.0Complete

Transaction

ERA ILogicalDFD

18

Documentation-Flowcharts

Class # 4

Recommendation: Bring colored pencils or highlighters of about 4 or 5 differentcolors to class today (just in case - they aren’t really necessaryfor flowcharts).

Today, we will go through the preparation of flowcharts from narratives, physical DFDs andlogical DFDs. Using the method outlined in class this activity is really quite simple.

Begin by drawing the flowchart grid. That is one line across at the top of the page andvertical lines to separate each internal entity. In other words, you must create a column foreach internal entity. Label the column with the name of the internal entity above thehorizontal line (Hint: look at the list of activities. If an entity has a lot of activities, give it afat column; if it only has a few activities, give it a skinny column). Every activity in your listof activities for the logical DFD which was not crossed off must either have one of threesymbols: a trapezoid if a person is doing it, a rectangle if a computer is doing it, or akeyboard if it is keyboard input into a computer or it must be a data flow to or from a file.

Every document which is prepared should appear and, if it is sent to another entity, it mustappear in both places.

It is frequently helpful (I do it all the time) to use “on-page connectors” rather thandrawing lines all over the diagram.

Symbols are connected with arrows which typically travel only horizontally and vertically(never at angles if you can help it). All file interactions should have heads on the arrows. Inaddition, if the arrow ever travels up or to the left, it must have a head on it. Otherwise, itmakes a cleaner diagram to not put arrow heads on the arrows.

The rest of flowcharting is best presented by the lecture (and overhead) materials.

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DONDON’’T DO IT!T DO IT!

ITIT’’S NOT HOPELESSS NOT HOPELESS

FlowchartingDue to thier complexity (when looking at them), flowchartsintimidate many people. However, if you take a verymethodical approach to constructing flowcharts, it’s reallynot bad!

Flowchartingmethodical approach

Step One: For each INTERNAL ENTITY in your physical DFD,create a heading and flowchart column.Step One: For each INTERNAL ENTITY in your physical DFD,create a heading and flowchart column.

Mailroom Acct. Rec CPTR Cashier

Note that there is one column created for each ofthe internal entities in the Causeway narrative

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Flowchartingmethodical approach

Step Two: Flowchart each activity - one by one! For eachactivity (other than a send or receive) draw a computer processsymbol rectangle, a manual process symbol trapezoid, or akeyboard for “keyed” in information.

Step Two: Flowchart each activity - one by one! For eachactivity (other than a send or receive) draw a computer processsymbol rectangle, a manual process symbol trapezoid, or akeyboard for “keyed” in information.

computerprocesssymbol

computerprocesssymbol

manualprocesssymbol

manualprocesssymbol

2.Endorsechecks.

2.Endorsechecks.

13.Verifies the invoice is open

and correct amt is pd.

13.Verifies the invoice is open

and correct amt is pd.

Keyboardsymbol

Keyboardsymbol

7.Enters datainto CPTR.

7.Enters datainto CPTR.

Receiving andsending do not

require a processsymbol

Customer

Endorses checksEndorses checks

ChecksR/As

1

2

Causewayexample

Causewayexample

If one entity performs severalactivities in sequence, you can putthem in a single process symbol

If one entity performs severalactivities in sequence, you can putthem in a single process symbol

example fromCauseway

Endorse checksAnnotate R/APrepare B/T






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Just add activities one by one!

Unless it is really simple to draw anarrow to or from another entity,

USE ON PAGE CONNECTORS!(a small circle)

Unless it is really simple to draw anarrow to or from another entity,

USE ON PAGE CONNECTORS!(a small circle)

AA

Customer

Endorses checksAnnotate R/As

Prepare B/T

Endorses checksAnnotate R/As

Prepare B/T

1

2,3,4

Batched Checks

B/TBB

Checks R/As

BatchedR/As

Flowchart symbolsFlowchart symbols

1 Computer process2 Manual process3 Tape (sequential file)4 Disk5 Paper file6 & 8 Document (In or out)7 Keyboard Input9 CRT display (cptr)10 OFF page connector11 ON page connector12 External Entity13 Batch Total

1 Computer process2 Manual process3 Tape (sequential file)4 Disk5 Paper file6 & 8 Document (In or out)7 Keyboard Input9 CRT display (cptr)10 OFF page connector11 ON page connector12 External Entity13 Batch Total

1

11

10

Processes Storage(files)

Input Output Miscell.

2

3

4

6

7

8

9

12135

Mailroom 1. Receives checks and remittance advices2. Endorses checks3. Write amt paid and ck# on R/A4. Prepare B/T5. Send batch of R/As and B/T to Acct Rec clerk6. Send batch of cks to Cashier

Acct Rec 7. Enter batch into online terminal (CPTR)8. Key the B/T, cust #, invoice #, amt pd, and ck#9. Compare CPTR reports w/ R/As & B/T10. Send total of C/R to G/L office

Cashier 11. Compares deposit slip w/ batch of cks12. Takes deposit to the bank.

CPTR 13. Verifies the invoice is open and correct amt is pd.14. Posts pmt to A/R master15. Notifies clerk of errors16. Prints deposit slip (at printer in Cashier office)17. Logs transactions18. Creates C/R listing19. Prints summary of customer accts paid

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checks R/As

Endorse cksAnnotate

R/AsBatch

customer

batchedR/As

B/T

Abatchedchks

B

2,3,4





This happens before13 and 14.

This happens before13 and 14.


batchedR/As

B/T

ALogTxns

VerifyInvoice

Post toA/R

A/R

txnlog

8

17

14

13

key in

checks R/As

Endorse cksAnnotate

R/AsBatch

batchedR/As

B/T

Abatchedchks

B

Customer

23






Preparedep. slip

deposit slipdeposit slip

B

batchedchks

Reconcilecks &dep

deposit slipchecks

Bank

16 11

Post toA/R

batchedR/As

B/T

ALogTxns

VerifyInvoice

Post toA/R

A/R

txnlog

key in

checks R/As

Endorse cksAnnotate

R/AsBatch

batchedR/As

B/T

Abatchedchks

B

Customer






24


Compareprintouts& R/As

TotalC/R

End ofDay Printouts

C/R Listing

Summary of cust accts pd

C/R Listing


18,19

G/L

9

B/T Post toA/R

Preparedep. slip


B

batchedchks

Post toA/R

batchedR/As

B/T

ALogTxns

VerifyInvoice

Post toA/R

A/R

txnlog

key in

checks R/As

Endorse cksAnnotate

R/AsBatch

batchedR/As

B/T

Abatchedchks

B

Customer

Reconcilecks &dep

deposit slipchecks

Bank



checks R/As

Endorse cksAnnotate

R/AsBatch

customer

batchedR/As

B/T

Abatchedchks

B

batchedR/As

B/T

ALogTxns

VerifyInvoice

Post toA/R

A/R

txnlogtxnlog

Preparedep. slip


Compareprintouts& R/As

TotalC/R

End ofDay Printouts

C/R Listing


C/R Listing


G/L

Key in

B

batchedchks

Reconcilecks &dep

deposit slipchecks

Bank


25

AmeriCompBackgroundAmeriComp industries manufactures specialized PC components and sellsthem to other businesses. Customers may send Purchase Orders usingeither the Web or the regular mail. AmeriComp processes these identically.The following narrative describes their order-entry process.

NarrativeThe order-entry clerk at AmeriComp receives a purchase order (PO) from acustomer. The clerk enters the customer number into an online terminal.The clerk then enters the quantity and item numbers requested. Thecomputer checks the inventory file and prints a Sales Order Header on theprinter in the order-entry clerk's office. The order entry clerk reconcilesthe Sales Order Header to the PO and forwards the Sales Order Header toAccounts Receivable.

The clerk in Accounts Receivable reviews the Sales Order Header andchecks the customer file. The Accounts Receivable clerk then approves theSales Order Header (by initialing the approval box - the approved SalesOrder Header is now called a Sales Order).1 The Accounts Receivable clerkcopies the approved Sales Order and forwards the copy to the Shippingdepartment. The Accounts Receivable clerk forwards the original SalesOrder to the order-entry clerk. The order-entry clerk prepares a vendoracknowledgement and sends it to the customer. The clerk then files theSales Order and Purchase Order together in a Sales-Pending File.

1 Don't diagram the information in the parentheses.

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Logical DFD for AmeriComp

1.0Prepare

SOHeader

2.0Approve

SO

3.0PrepareVendor

Ack.

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ERA II Each day, the computer at ERA reads the Sales Order Database, checks the inventory master file for availability, and prints a copy of each sales order in the sales manager’s office, a picking ticket in the warehouse, a sales order notification in the accounts receivable office, and a packing slip in the loading dock. The warehouse clerks then use the picking ticket to pick the goods and record the amount picked on the picking ticket. The warehouse clerk then sends the goods and the picking ticket to the loading dock where the shipping clerk reconciles the picking ticket and packing slip and prepares a bill of lading. The shipping clerk then attaches a packing slip to the goods and ships the goods via a common carrier. The shipping clerk then keys in the sales order number on a terminal at the loading dock and enters a code to indicate that the goods have been shipped. The computer then notifies the Inventory management (the Inventory system) and Accounts Receivable (the BARCR system) departments of the shipment and updates the Sales Order Database to reflect the shipment.

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Logical DFD for ERA II

1.0

Process Sales Order 2.0

Pick Goods

3.0 Ship

Goods 4.0 Update

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Documents

Documentation- Introduction and Physical DFDshome.kelley.iupui.edu/jrsmith2/Teaching/A337webF09/A337Fall09lec… · Recommendation: Bring colored pencils or highlighters of about